What is the effect of delivering an insurance policy that has not been paid for?

In the context of insurance, if a policy is delivered before payment has been made, the coverage typically remains in effect until the grace period for premium payment expires or until the insurer takes action to cancel the policy. This means that, technically, the insurance coverage is applied and valid within that timeframe, even if the payment hasn't been received yet. Insurers often include a grace period in the policy, allowing policyholders some time to make their payment without immediately losing coverage.

When a policy is delivered without payment, the insurer typically expects the premium to be paid. If the premium is not eventually paid, the policy may later be canceled, but at the moment of delivery, coverage holds until the insurer decides otherwise or the grace period ends. This is why coverage is still applied even in the absence of immediate payment.